Sefalana Group has warned its shareholders to prepare for a dip in profit before tax (PBT) in latest interim results, citing difficult trading conditions driven by a weakening domestic economy, high food inflation and rising cost of living pressures.
The listed diversified company said group profit before tax for the half year ended October 2025 is expected to be between 10% and 12% lower than the same period in 2024. “The Board of Sefalana has informed its shareholders that Sefalana’s Group profit before tax for the 26 week period ended 26 October 2025 will be between 10% and 12% (approximately P22 million to P26 million) lower than that reported for the comparative 26 week period ended 27 October 2024 which amounted to P219 million,” the company said in a cautionary announcement issued on the Botswana Stock Exchange (BSE). The country’s largest retailer and wholesale grosser attributed the anticipated decline primarily to the challenging economic environment prevailing in Botswana.
The unfavourable trading conditions follows a slowdown in the diamond sector and the currency adjustment to the pula effected in July 2025. “This is predominantly as a result of the tough economic environment experienced in Botswana following the decline in the Diamond sector and the currency adjustment made to the pula in July 2025,” directors added. The downturn in diamond sector, which is the mainstay of the economy, has continued to weigh heavily on the broader economy, affecting disposable incomes and consumer spending. Retailers have faced slower sales growth as households grapple with job insecurity, reduced earnings and higher living costs. At the same time, food inflation has remained elevated, increasing pressure on consumers while also raising operating costs for retailers.
Higher import prices, transport costs and utility charges have further squeezed margins across the sector. Sefalana operates a wide network of supermarkets, wholesale outlets and quick service restaurants, placing it directly in the path of shifting consumer behaviour as shoppers trade down, reduce basket sizes or prioritise essential items. The currency adjustment in July 2025, while aimed at improving export competitiveness, has added to inflationary pressures by increasing the cost of imported goods, a significant factor for retailers dependent on imported stock.
